Yoni Hessler of BGR gets so much wrong today in an article trying to argue that Tesla is not losing money on their cars that the sheer audacity of the claim the Model S is profitable is astounding.

Let's start with the assertion that the Model S has margins that are "some of the best across the entire auto industry." Gross margins, what is left over after your manufacturing costs are deducted, are only a piece of the puzzle. 

There was no way I was going to allow someone to deduct $9.99 per month from my bank account in perpetuity. I'm the guy who crunched the numbers on a financial comparison of streaming versus purchasing (iTunes vs Spotify), and it just didn't make sense for someone like me to stream because I don't listen to music enough to make it pay off. The math says that unless you are constantly discovering and acquiring new music, just buy a few songs now and and you will come out ahead. But people aren't usually in acquisition mode. They tend to spend most of their time with their main library, and when they are in the mood for something different they will explore new artists to sprinkle into their staples. And the larger the library, the less of a need you will have to explore. 

But I do love the feeling of beating the system. You know those offers you see from various companies who say you can use their services for free for a period but at the end they will start charging you? I love those. It's not that hard to setup a reminder in your calendar to cancel something on a future date so why not enjoy something for nothing? Free magazines, free food, free movies, I get them all and I never pay a penny for any of it because I'm good about canceling right when I need to. It's like taking candy from a baby.